Banking stocks were the best performers on Tuesday after data showed that funding conditions for British lenders had eased in the fourth quarter of 2013.Stocks in the sector have traded broadly sideways over the past two weeks of so, taking a breather over the festive season. However, Lloyds has outperformed in recent sessions on increasing speculation that the company may restart dividend payments when it announces its 2013 results in March. Meanwhile, rumours surrounding a potential upcoming sale of the government's 33% stake in the lender - following its bailout in 2008 - have also been doing the rounds.Banking peers HSBC, Royal Bank of Scotland and Barclays were also in demand in afternoon trade.Investec analyst Ian Gordon said: "I think part of [Tuesday's] rally (for Lloyds in particular) can be attributed to the Bank of England's (BoE) Bank Liabilities Survey."The BoE said today that UK banks and building societies reported that their total funding volumes (requirements) fell significantly in the three months to early December and are expected to continue to fall in the first quarter of 2014. Spreads on retail funding costs had also fallen in the fourth quarter of 2013.Gordon explained to Sharecast: "It's not that it contains surprising news, but de facto confirmation of improving capital metrics, improving retail deposits and (significant) declines in funding volumes/requirements is all helpful and will cause some to revisit Net Interest Margin forecasts with (further) upside potential."Top performing sectors so far todayBanks 4,946.30 +2.07%Life Insurance 7,005.11 +1.31%Mobile Telecommunications 5,540.77 +1.00%Real Estate Investment & Services 2,738.81 +0.88%Travel & Leisure 7,451.92 +0.78%Bottom performing sectors so far todayIndustrial Transportation 3,188.46 -1.93%Technology Hardware & Equipment 1,222.72 -1.55%Personal Goods 24,315.37 -1.23%Industrial Metals & Mining 1,363.48 -1.21%Gas, Water & Multiutilities 5,598.33 -0.68%BC